Pricing expert: "Apple could have charged MORE for iPhone"

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The downside of Apple’s iPhone is that it’s too expensive, right? Wrong. At least, that’s the view of Rafi Mohammed, author of a book called ‘The Art of Pricing’. So he should presumably know.

“It kept the 4GB model under the psychological $500 threshold which was smart,” he says in an interview with the BloggingStocks blog. “It probably could have charged a higher price for the 8GB model though.”

“Even with reported gross margins of 50%, which makes it tempting to discount, I’d advise Apple to moderate its discounting and consider setting higher prices when it rolls out models with new features.”

Don’t listen to him Steve! Cut the price by half when it comes to the UK, there’s a good chap.